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Carolina Beverage Group Prepays Subordinated Debt

Leading Beverage Packager Reduces Financing Costs

MOORESVILLE, N.C.--(BUSINESS WIRE)-- Carolina Beverage Group, LLC ("Carolina"), a leading independent packager serving high-growth segments of the functional beverage market, today announced that it has prepaid in full its outstanding subordinated debt incurred two years ago to support its continued growth and facilitate an equity recapitalization. Carolina’s existing senior lenders, BMO Capital Markets, BBVA Compass, Fifth Third Bank and Roynat Capital provided essential support to facilitate the debt prepayment to its subordinated lenders, which include Plexus Capital. Specific terms of the transaction were not disclosed.

Founded in 1997, Carolina produces a broad array of ready-to-drink teas, innovative fruit drinks and a variety of other high-growth functional beverages. Carolina has steadily built a reputation over the past 15 years as a world class producer for the leading beverage brands of the world. With an emphasis on blending complex, innovative beverages in specialty-sized cans and specialty plastic bottles, market leading customers trust their brands with Carolina’s world class quality standards and uncompromising customer service.

Harry Barto, Chief Executive Officer of Carolina, and his senior management team combined have more than 100 years of experience in the beverage industry, as well as a proven track record of supporting customer growth, while maintaining world class quality standards. Carolina recently completed its audit by NSF International that tests and certifies public health and safety standards and is widely respected by the leading beverage brands of the world.

Mr. Barto said, “We are extremely proud of this important vote of confidence in Carolina and its employees from our financing partners. We hope the reduced financing costs will give us even more flexibility to continue to provide the highest level of quality, innovation and service to the leading beverage brands of the world.”

Sullivan & Cromwell, LLP represented Carolina and its majority shareholder, SunTx Capital Partners, LP, in the refinancing, with Parker Poe Adams & Bernstein, LLP serving as local counsel. Mayer Brown, LLP represented the senior lenders to Carolina.

About SunTx Capital Partners:

SunTx Capital Partners, LP, is a private equity investment partnership that works closely with management teams to buy and build middle market companies. Founded in 2000, and headquartered in Dallas, SunTx has approximately $600 million of assets under management. The capital committed by SunTx comes from the principals of SunTx as well as from institutional investors, including leading university endowments and corporate and public pension funds.

For Carolina Beverage Group:
Shannon Hilton, Chief Financial Officer, 704-799-2337 x208
or
For SunTx Capital Partners:
Kekst and Company
Melissa Sheer, 212-521-4800

Source: Carolina Beverage Group, LLC